How does Microsoft Project calculate project costs?
Most people assume that the calculation of project cost is the result of the formula, Standard Rate x Work. Close, but no cigar! This simple formula is only a small part of a much more robust method of calculation available in MS Project. In fact, Project offers a powerful model for calculating and managing project costs by looking at task costs, resource costs, assignment costs, and more.
If you are interested in learning more about MS Project’s cost model, please watch my on-demand webinar. I will take you on a “deep dive” of all aspects of the cost model, including:
- Creating Work, Material, and Cost resources to prepare for modeling project costs
- Understanding how the Standard Rate, Overtime Rate, and Cost Per Use fields contribute to task costs
- Understanding the resource cost accrual method
- Understanding the behavior of the Fixed Cost and Fixed Cost Accrual fields
- Understanding the formula used by MS Project to calculate task costs (HINT: there is much more to the formula than you might realize.)
- Using Cost Rate Tables to track multiple resource cost rates
Note: This webinar does not include content on Earned Value Analysis (EVA), a topic that could consume an entire hour all by itself, but it is eligible for 1 PMI® PDU in the Technical category of the Talent Triangle.